A Distribution Approach to Fraud Detection

Say the Dow Jones Industrial Average rose on average 20% per year (I am not hallucinating, just want to make a point). If the Dow Jones average started at 1000, in order to get to 2000, a 1000 point increase, it would have to rise 100%. That is a very large percentage increase and would require about 5 years (simple growth not compounded). But if the Dow was at 9000 and experienced 20% growth in order to get to 10,000, also a 1000 point increase, it would take about 6.5 months. That means that the number 1, the first digit in the Dow Jones at 1000 would appear as the first digit for about 5 years and the number 9, the first digit in the Dow Jones at 9000 would have the honor of being in that position for about 6 months.